General Investing

Analysts describe a potentially more positive future for Transocean LTD (RIG) stock after the Macondo oil spill in the Gulf of Mexico in 2010, citing improved operational procedures and the name trading at a discount:

“First, Carl Icahn got involved in Transocean early this year. Even though it was widely viewed as an undervalued name, I think Carl Icahn getting involved really brought the story to the fore again. I believe that it is a company that really did a great job re-engineering itself following Macondo. They launched a number of internal initiatives to address some of their shortfalls in procedures, and they are upgrading the whole infrastructure of the company. After about 18 months of that, I think that 2013 and 2014 will be very bright for Transocean, because a number of those initiatives should provide benefits in the upcoming years. I think that may be one of the many reasons why Mr. Icahn got involved in the name,” said Nigel Browne, Equity Research Analyst at Macquarie Capital.